The Growth Story Of India’s Leading Electronics Distributor With KredX
A pioneer in the IT and telecom distribution & services intermediary in India, this company supplies everything from servers to laptops and components to accessories. The company boasts of a comprehensive and in-depth national network of over 9000 retail points, safe warehousing, robust 24×7 logistics support, and years of ethical business practices earning them an immense wealth of goodwill. The company has an unparalleled network and support system in place to cater to all formats of the business – traditional retail, modern trade and the online marketplace.
Snapshot Of The Company:
Product: IT & Telecom Distribution
On The KredX Platform Since 15 January 2019
Invoice Amount Discounted Till Date: ₹100 Cr
A Quick Glimpse Of Their Journey So Far With KredX:
The company that started with the aim to provide cost-effective products and solutions in all areas of IT with just INR 2 lakh as capital has today grown into a professionally managed supply-chain specialist with an INR 3400 crore turnover. Unwavering commitment to customer satisfaction, unbridled passion for excelling, seamless teamwork and strong business ethics lead the company to have a huge and diversified clientele on a daily basis. In such cases, the payment cycle can be spread over a few weeks. To accelerate the growth of any business, it is critical to deal with large vendors whose payment timelines may vary, ultimately impacting their liquidity.
The company tried going for various financial modes of assistance searching for solutions that could help address their needs, but there were several challenges with the offerings, primarily the time involved in the process. Some other added drawbacks were:
- Lower funding limit as per existing norms and procedures
- The company was required to furnish collateral’s and financial history to avail traditional offerings
- Other forms of short term and long term borrowing were expensive
- Challenges availing funds for liquidity and growth
The KredX Offering
We offered them a customized ‘Receivables Financing’ product for the company’s vendors that provided them with 90 days of additional working capital, wherein:
- The company raises invoices against their customers payable within 90 days
- KredX offers finance to the company and receives money from the enterprise on the due date
- Discounted invoices are listed on the KredX’s platform for 90 days
- KredX’s investors purchase invoices as per the terms and conditions
- At the end of 90 days, KredX investors receive the principal amount invested along with the profit earned
With KredX, the company was able to accelerate its growth and expansion with an increase in liquidity and effectively repurposing their capital to better suit the requirement. The business found the solutions of sourcing credit without an added debt responsibility attached to the proposition feasible.
How We Helped Them:
Our platform helped the company manage its liquidity while ensuring its relationship with the customer does not get impacted.
By associating their business with KredX, they were able to grow further and expand the business, increasing liquidity without impacting the balance sheet. Our tailor-made processes and structured solutions helped the company better allocate its capital for its growth requirements.